The Land Reform (Scotland) Bill (“the Bill”) completed Stage 2 of the legislative process on 24 June 2025. During this stage of the process, Members of the Scottish Parliament (MSPs) were given the opportunity to propose amendments to the Bill as it stood following Stage 1. The Scottish Government considered feedback received during Stage 1and has released a revised version of the Bill. Below are some of the noteworthy amendments made at Stage 2 in relation to the measures applying to large landholdings.
Each measure relating to large landholdings has a different scope and depends on the definition of landholdings in the specific context of the relevant provisions. Whilst we have made simplified reference to these definitions below, the definitions are complex. In order to confirm the scope of each measure, the definitions need to be considered in detail and we will cover this in a separate blog.
Extended Opportunities for Communities to Register Interests in Land
The Bill as introduced sought to place a prohibition on the sale of a landholding (in this context, this is broadly defined as a landholding exceeding 1,000 hectares of land in size) – or any part of it, regardless of the size of the part - without first notifying Scottish Ministers to give community bodies the chance to register an interest in the land.
De Minimis Rule
There were concerns that this requirement was too onerous and would create a significant administrative burden, as notification would be required even for the sale of small parcels of land where they formed part of a larger landholding exceeding 1,000 hectares.
In response to this feedback, the Scottish Ministers introduced an exception for small-scale land sales by allowing those with large landholdings to sell a part of their land, so long as it does not exceed a specified threshold. The parameters of this threshold will be outlined further by the Scottish Ministers in subsequent regulations.
Timeframes
Under the Bill as originally drafted, once a landowner had notified the Scottish Ministers of their intention to sell or transfer a large land holding or any part thereof, the Scottish Ministers must publicise the proposed transfer and there is an opportunity for persons to submit a note of intention to register an interest. Throughout this period, the prohibition continues in place.
Previously, if such a note of intention was received, the Bill imposed a further 40 day prohibition period to allow community bodies time to submit a formal application to exercise their right to buy.
However, following Stage 2 this subsequent prohibition period has now been extended from 40 days to 70 days. The intention behind this amendment being to provide community bodies with more time to prepare their formal application and state their intention to exercise their right to buy.
Lotting
The Bill makes provision for lotting decisions, Under these provisions, it is for the Scottish Ministers to decide whether large landholdings should be sold as a whole or whether instead it should be transferred in lots. As with each of the measures applying to landholdings in the Bill, there are detailed provisions about threshold sizes – but the key threshold for lotting decisions is 1,000 hectares.
Accordingly, when making a lotting decision, Scottish Ministers must consider whether the public interest would be better served by transferring the land in lots rather than as a whole. They may only decide that the land is to be transferred in lots where they consider it would be in the public interest.
New timeframe for lotting decisions
The timeframes relating to lotting decisions were amended at stage 2, This amendment came in response to criticism regarding the absence of a timeframe, which created uncertainty for landowners as to when they would be able to proceed with selling their land.
The amended Bill now provides that the Scottish Ministers are required to make a lotting decision within six months from the date on which an application is received. However, the Bill specifically provides that any failure to comply with the 6 month timeframe will not affect the validity of the decision.
Community Engagement and Land management plans
The Bill provides Scottish Ministers will the powers to impose regulations in relation to the promotion of community engagement. The regulations must require the owner of land to ensure that there is a publicly available land management plan in place.
The threshold size of landholdings which will be subject to these regulations has been reduced from 3,000 hectares to 1,000 hectares.
The amended Bill has strengthened community engagement responsibilities for the owners of large landholdings. Landowners are now under a duty to include the steps taken to engage with communities during the development of the plan and how community engagement has informed the land management plan. An obligation has also been added to consult tenants, crofters, local communities and small landowners during development or (and significant changes to) the plan.
The financial penalties for failing to comply with an obligation imposed by regulations has been increased from £5,000 to £40,000.
Stage 3
It is important to note that none of the provisions of the Bill are yet in force as the Bill is still progressing through Parliament. During the next stage, Stage 3, MSPs will get the chance to propose further amendments And these amendments will be debated. and MSPs will get the opportunity to vote on the various proposals. Finally, MSPs will vote on whether the Bill should be passed into law. We will provide further updates at Stage 3 of the Bill.
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